Old Head of Kinsale could be company maker: Petroceltic

Shareholders in upstream oil and gas company Petroceltic heard today that its Old Head of Kinsale gas field in the Celtic Sea could be a 'company maker'.

Executive Chairman Brian Cusack said the Old Head field had similar geological characteristics to the nearby producing Kinsale Gas Field, operated by Marathon Petroleum.

It has the potential to contain gas reserves in excess of 40% of Kinsale, and the company is examining options to fast-track the development of this prospect.

Petroceltic has a 38% interest in a three-block option area in the Celtic Sea.

Following resolutions passed at the AGM, and subject to the exercise of conditional warrants, Petroceltic will have cash reserves of $15m (€12m) to pursue these and other opportunities.

"This financial strength leaves us extremely well-positioned to pursue our strategy of low-risk projects with high potential," said Mr Cusack.

Investors in the company were given an upbeat assessment on the recently completed evaluation on the Sidi Toui oil prospect in Tunisia.

Cusack said progress was "very encouraging" and said that Petroceltic anticipates drilling a well on the platform by August.

Sidi Toui is capable of holding up to 400 million barrels of recoverable light crude oil and there is a significant amount of oil in place.

Petroceltic had also recently identified a second major structure, Oryx, within its Ksar Hadada licence area in Tunisia.

Oryx is close to Sidi Toui and though smaller it has similar geological characteristics and a similar risk profile, and may be drilled by the end of the year.

Petroceltic International plc is an upstream oil and gas company registered in Ireland and is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange.

The company is now focused on oil and gas exploration, development and production in North Africa and offshore Ireland in the Celtic Sea, where it has interests in the Kinsale Gas Field and nearby blocks.